Preliminary communication
https://doi.org/10.18045/zbefri.2022.1.201
Modelling framework of the Tandem Supply Chain Efficiency and Sustainable Financial Performance in the Automotive Industry
Simona Burta
orcid.org/0000-0002-6067-0837
Sorana Vătavu
Emilia Bozga
Oana-Ramona Lobonț
orcid.org/0000-0002-2942-3715
Ana-Cristina Nicolescu
Abstract
The research examines the causal relationship between supply chain efficiency and
sustainable financial performance based on the evidence from the literature
dealing with a transition from financial decision-making based on the financial
outcome, including financial rationale in supply chain design, operations, and
management. The case study has included 100 companies selected from the
automotive production sector over ten years, from 2010 to 2019. Methodologically,
the study includes statistically fixed and random effects models, considering within the model parameters as dependent variables asset and efficiency-based ratios
and as independent variables financial performance ratios related to returns on
assets, equity, capital expenses, and sales. The selection of the fixed or randomeffects model is accomplished by performing the Hausman test. The results of
panel analysis indicate a causal relationship for the proposed models, highlighting
the importance of efficiency ratios such as Fixed Assets Turnover Ratio, Total
Assets Turnover Ratio, and Fixed Assets Turnover. From practitioners` perspective,
the models` construction and the paper’s results gain insight into strategic supply
chain areas that can be prioritised for increased efficiency and corporate
competitiveness, promoting sustainable financial performance through asset
structure, asset efficiency, and inventory management.
Keywords
supply chain; sustainable financial performance; corporate competitiveness
Hrčak ID:
279913
URI
Publication date:
30.6.2022.
Visits: 638 *